What to Expect From Apple's Quarterly Earnings Report This Week

[MacRumors]

Apple will report its earnings results for the third quarter of its 2024 fiscal year on Thursday, August 1 at 1:30 p.m. Pacific Time. Apple's CEO Tim Cook and CFO Luca Maestri will discuss the results on a conference call with analysts a half hour later.

Keep reading for some key things to know about the quarter, including a recap of new products announced, revenue expectations, and more.

New Products During Quarter

The quarter ran from March 31 through June 29, according to Apple's fiscal calendar. The following products launched during this period:

• 11-inch iPad Pro with M4 chip
• 13-inch iPad Pro with M4 chip
• 11-inch iPad Air with M2 chip
• 13-inch iPad Air with M2 chip
• Apple Pencil Pro
• Vision Pro pre-orders in eight additional countries

Revenue Expectations

Apple has not provided formal revenue guidance since before the COVID-19 pandemic, but the average Wall Street estimate for Apple's third quarter revenue is $84.5 billion, according to data compiled by Yahoo Finance. This would be around a 3% increase over the $81.8 billion revenue the company reported in the year-ago quarter.

This would be in line with the outlook that Apple's CFO provided on last quarter's earnings call:

We expect our June quarter total company revenue to grow low-single-digits year-over-year in spite of a foreign exchange headwind of about 2.5 percentage points.

Conference Call

Cook and Maestri will hold a conference call at 2:00 p.m. Pacific Time on Thursday to discuss the company's quarterly earnings results. The call should last around one hour, and it will include a Q&A segment with analysts.

A live audio stream of the conference call will be available on Apple's Investor Relations page, and a recording will be available later in the day for replay.

What's Next

Apple's current quarter runs through September 28, and the company has yet to announce any new products during this period.

AAPL is trading for around $223 as of writing, down from a 52-week high of $237.23.

Article Link: What to Expect From Apple's Quarterly Earnings Report This Week

 

[Col4bin]

Will be interesting to see if iPhone sales are still “plunging” as CNN put it in April. Down 10% last quarter. (I guess that could be considered a nose dive as far as Apple is concerned?)

iPhone sales are plunging. Here’s why | CNN Business

Apple’s smartphone sales tumbled 10% last quarter, according to market research firm IDC, as sales in China fell sharply.

amp.cnn.com

 

[Amazing Iceman]

Will be interesting to see if iPhone sales are still “plunging” as CNN put it in April. Down 10% last quarter. (I guess that could be considered a nose dive as far as Apple is concerned?)

iPhone sales are plunging. Here’s why | CNN Business

Apple’s smartphone sales tumbled 10% last quarter, according to market research firm IDC, as sales in China fell sharply.

amp.cnn.com

Perhaps too many rumors about iPhone 17 and 18, causing people to decide to wait for the new releases instead of buying now.

 

[Realityck]

Perhaps too many rumors about iPhone 17 and 18, causing people to decide to wait for the new releases instead of buying now.

Generally smartphone sales are down because the technology has plateaued with what you can offer and consumers are retaining their smartphones longer which works against the upgrade your iPhone campaigns from Cellular service providers. The iPhone is not immune to all of this, hence the effort to light a marketing fire under AI to promote sales.

Older models drive down iPhone prices in June quarter

A metric used to gauge iPhone sales performance suggests a decrease in the average selling price in the June 2024 quarter due to the popularity of older models.

appleinsider.com

Also competition in China local marketplace versus iPhones sales. There are also restrictions with AI not being implemented there.

Why the absence of Apple Intelligence in China may weigh on iPhone sales

The exclusion of the much-anticipated Apple Intelligence suite of AI features from the mainland China market could weigh on iPhone sales in the country, analysts said.

www.scmp.com

 

[Johnnyponken]

Perhaps too many rumors about iPhone 17 and 18, causing people to decide to wait for the new releases instead of buying now.

Oh yeah. I will definitely be waiting. I have upgraded every two years since 3Gs. But there is absolutely nothing enticing about the 16 pro if you are on the 14 pro.

 

[klasma]

Generally smartphone sales are down

It doesn't really look like it:
https://www.counterpointresearch.com/insights/global-smartphone-market-q1-2024/

Worldwide Smartphone Market Up 7.8% in the First Quarter of 2024 as Samsung Moves Back into the Top Position, According to IDC Tracker

IDC examines consumer markets by devices, applications, networks, and services to provide complete solutions for succeeding in these expanding markets.

www.idc.com

 

[tipoo]

I suspect this earnings call will be liked. They showed big smartphone growth in India, and China rebounded and wasn't that bad. Even though there were headlines about them dropping a spot with Huawei back in China, they were still selling more units there even though they lost marketshare, still more revenue.

So they can show they're growing in emerging markets even if iPhone sales have been flat in developed markets for a while now, plus talk about the coming Apple Intelligence pitch starting this quarter with the iPhone 16 launch.

 

[tipoo]

Perhaps too many rumors about iPhone 17 and 18, causing people to decide to wait for the new releases instead of buying now.

Eh this happens every year. The iPhone 16 is already fully banked and a known quantity and all the rumours are already out about it, so by this time every year the rumours are already on to the next-next one.

The iPhone 16 will be a good cycle with average iPhone ages getting up there again and the AI pitch

 

[mazz0]

Perhaps too many rumors about iPhone 17 and 18, causing people to decide to wait for the new releases instead of buying now.

I wouldn't even say it's about rumours. You don't need rumours to know there's an annual upgrade, and it's acknowledged fact that the upcoming OS update leans on machine learning, which is dependant on a part of the processor that's improving significantly year on year, so there's far more reason to wait for the upcoming chips this year than there has been for a long time, and that's just based on what we know, not on rumours.

 

[vegetassj4]

CUPERTINO, CALIFORNIA

Apple today released quarterly earnings, a major release that features more earnings options, the biggest redesign ever of earnings reporting, new ways for stockholders to manage their holdings, and so much more. Stockholders will be able to arrange dividends and buybacks in stock trading app on the Home Screen, customize buy and sell orders, and quickly access more shares in Control Center. Stock portfolios are automatically organized in a new single view in Stocks, and helpful new collections keep favorites easily accessible. Apple has revolutionized earnings reporting, so that you can get more out of earnings than ever before. You are going to love it.

 

[DocMultimedia]

I expect Apple made lots of money, and will say they plan to continue with more of the same.

I don't expect any surprise dividend bonuses to randomly get paid to shareholders. But I sure wouldn't mind. 😀

 

[AlexESP]

Will be interesting to see if iPhone sales are still “plunging” as CNN put it in April. Down 10% last quarter. (I guess that could be considered a nose dive as far as Apple is concerned?)

iPhone sales are plunging. Here’s why | CNN Business

Apple’s smartphone sales tumbled 10% last quarter, according to market research firm IDC, as sales in China fell sharply.

amp.cnn.com

Could be true, but I’m always very skeptical of sales rumors. Recall how last quarter all reports said iPhone sales had tanked in China, and in the end Apple reported they actually *increased*.

 

[9081094]

It doesn't really look like it:
https://www.counterpointresearch.com/insights/global-smartphone-market-q1-2024/

Worldwide Smartphone Market Up 7.8% in the First Quarter of 2024 as Samsung Moves Back into the Top Position, According to IDC Tracker

IDC examines consumer markets by devices, applications, networks, and services to provide complete solutions for succeeding in these expanding markets.

www.idc.com

I wouldn’t be surprised if Apple makes a nosedive. The iPhone 12,13,14,15,16 are basically the same phones with some minor changes.

 

[now i see it]

Billions in profits while Apple Store employees unionize

 

[fel10]

That they still have more money than some countries?

 

[ducknalddon]

The iPhone 12,13,14,15,16 are basically the same phones with some minor changes.

True although the 16 is quite different from the 12.

 

[9081094]

True although the 16 is quite different from the 12.

In what way will it be different? Action button, colors, new chipset, more RAM??? For what I’ve read I’m wondering what a multibillion company has been doing a whole year…

 

[Amazing Iceman]

In what way will it be different? Action button, colors, new chipset, more RAM??? For what I’ve read I’m wondering what a multibillion company has been doing a whole year…

What else are you expecting from a phone, besides better cameras, sensors, chipset, etc.?
A phone is a phone... no coffee maker feature for it.

 

[deaglecat]

Will be interesting to see if iPhone sales are still “plunging” as CNN put it in April. Down 10% last quarter. (I guess that could be considered a nose dive as far as Apple is concerned?)

iPhone sales are plunging. Here’s why | CNN Business

Apple’s smartphone sales tumbled 10% last quarter, according to market research firm IDC, as sales in China fell sharply.

amp.cnn.com

Apple has no competitive mid-range phone offering (and certainly no budget phone). The worldwide midrrange market is huge and Apple desperately needs to get the SE4 into the retail channel.

 

[sw1tcher]

Could be true, but I’m always very skeptical of sales rumors. Recall how last quarter all reports said iPhone sales had tanked in China, and in the end Apple reported they actually *increased*.

Mainland China iPhones sales increased in Q2 2024 from Q1 2024, but they *declined* year-over-year when compared to Q2 2023. You generally want to compare things like-for-like which in this case means Q2 2024 vs Q2 2023, not Q1 2024.

Q1 2024: https://www.macrumors.com/2024/02/01/apple-1q-2024-earnings/

2:45 pm: Q: I was hoping to talk a little bit about what are you seeing in China right now? I think from a geographic basis, it's one of the few places that was down double digits while everything else was going up slowly. What do you see now from a competition perspective and a demand perspective in China?

A: If you look at ‌iPhone‌ in China mainland, which I think has been the focus of a lot of interest, and you look at it in constant currency, so more of an operational view, we were down mid-single digits on ‌iPhone‌. And so it was the other things that drove the larger contraction year over year. On the good news side, we had solid growth on upgraders year over year in mainland China and we had four of the top six smartphone models in urban China.


Q2 2024: https://www.macrumors.com/2024/05/02/apple-2q-2024-earnings/

2:41 pm: Q: On China discussion, could you step back, these numbers are still declining on a year over year basis. What are you seeing from a macro basis in China, do you think this is macro or micro driven over there?

A: I can only tell you what we're seeing, I don't want to present myself as an economist so I'll steer clear of that. What we saw was an acceleration from Q1 and it was driven by ‌iPhone‌ and ‌iPhone‌ in Mainland China before we adjust for this $5 billion impact did grow. Other products didn't fare as well, so we clearly have work to do there.


Plus, when Apple talks about an "acceleration from Q1," they're referring to a revenue increase not a units increase. Unit sales tell a better story of what demand is than revenue, but Apple doesn't report iPhone unit sales anymore.

 

[lkrupp]

And Apple's market cap has been pulling away from Microsoft. Apple is once again the most valuable company in the world.

 

[lkrupp]

Perhaps too many rumors about iPhone 17 and 18, causing people to decide to wait for the new releases instead of buying now.

Again, only, exclusively on tech blog forums. The real world doesn’t even know about these rumored products. Tech blog forums have their own RDFs where Apple is a failed company with substandard products, no QA, and very unhappy customers. Tech blogs are fantasy environments filled with nonsense.

 

[Isengardtom]

Probably good iPad sales.

I expect weak Mac results

 

[frownface]

Item i'm most curious about is the vision pro.

If they hammer on about how well it's sold in the USA, and that they're struggling to meet demand. Then that's a great outlook.

If they gloss over it altoghether and instead harp on about promising demand in countries they'll launch in soon. Then the product is doomed.

 

[Johnnyponken]

Probably good iPad sales.

I expect weak Mac results

I think they are expecting better sales than what they have been seeing though. The M4 iPad is just a crippled mess. I think we are going to hopefully see Apple AI with the M5 and only then see actual quality of life improvements. The way it is now.. just no.